Regulators seek contempt ruling against Martin Shkreli over pharmaceutical ban

The Federal Trade Commission and seven states have filed a legal claim asking a court to hold Martin Shkreli in contempt for allegedly breaching his lifetime ban from the pharmaceutical industry. Ars Technica, MarketWatch, The Guardian, the Financial Times, Reuters, CNBC, and Endpoints News all reported on the regulatory enforcement action. [1][2][3][4][5][6][7]

According to Ars Technica, the FTC compiled evidence showing that Shkreli traded pharmaceutical stocks and attempted to influence the management of multiple drug companies through public commentary. FTC Commissioner Mark Meador stated that Shkreli blatantly disregarded the injunction after leaving prison. Ars Technica also noted that Shkreli livestreamed himself claiming he could always find biotech stocks to target. [1]

Shkreli is the co-founder of hedge funds MSMB Capital Management and MSMB Healthcare, as well as pharmaceutical firms Retrophin and Turing Pharmaceuticals. He was convicted of securities fraud in 2017 and sentenced to seven years in prison in 2018 before being released from federal custody in 2022, after which courts upheld his lifetime industry ban. [8][9]

In response to the filing, Shkreli stated that he was surprised by the FTC action, according to Ars Technica. Regulators are seeking consequences commensurate with the seriousness of the court order to ensure the lifetime ban remains effective. [1]